Show That the Correlation Coefficient Between Y and X Is

question 62

Essay

Show that the correlation coefficient between Y and X is unaffected if you use a linear transformation in both variables.That is,show that corr(X,Y)= corr(X*,Y*),where X* = a + bX and Y* = c + dY,and where a,b,c,and d are arbitrary non-zero constants.

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Credit

A bookkeeping record that enhances a liability or equity balance, or diminishes an asset or expenditure balance.

Debits

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, recorded on the left side of the ledger.

Credits

Credits are accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts.